Episode Details

Did you know if you keep saying you're too busy it probably means you're not charging enough? Are you ready to start charging what your digital agency is worth?

Being too busy is the quickest way to not only burn yourself out but also your team. I've been there, and let me tell you I was on the verge of shutting down my agency from being overworked and undervalued. We were doing so many things wrong. We were talking to the wrong clients, working long hours, and worst of all, barely making ends meet.

If any of this sounds familiar, it's time to get out of your own way and start charging what you're worth.

1. Understand the value and results your agency delivers.
2. Build trust with clients through an offer ladder.
3. Position yourself as an authority in your space.

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In this video, you will learn the three pricing structures you can use to get you to a place where your pricing will both be more on par with the results you deliver and will give you an advantage over other cheaper agencies.

Most agency owners believe at some point that low prices will give you an advantage over the rest. However, I'd argue that increasing your prices actually works to your advantage. As an adviser, I go through the financials of thousands of agencies, and in up to 90% of cases, I recommend they increase their prices. The suggestion alone makes them back away in fear.

I get it, most agency owners worry about things like losing the pitch because their prices are too high. However, I counter with "What if you lose the pitch because your pricing is too low?" You don't think this can happen? It happened to me!

Years ago I got a call from a prospect that needed a website. I nailed the call and was invited to their office to present an offer. Their office was HUGE. Who was this company? I proceeded to make the pitch and said my price: $10,000. They actually laughed and I was so confused. Was the price too high?

Well, it turns out this company I'd never heard of, Berkshire Hathaway, was expecting to spend around $300,000 on the website. They loved the pitch and were excited to work with us until I named my price... because it was too low they thought it wouldn't deliver the results they expected.

So how should your digital agency pricing be structured? How can you come up with a price that shows your value, increases profit, and allows you to win more deals? A lot of businesses tend to set a price and then not think about it again for years. When there's one element of your business that affects everything other element so much, it's definitely not something to be forgotten. Pricing should evolve as much as your business does.

Should agencies charge by the hour? Honestly, I'm not a fan. This is my absolutely least favorite model. Charging by the hour sounds like a great idea, but as you get better and more efficient at your job you'll be working fewer hours and thus making less money. I